“The Wirecard management consulting is intense work with the auditor towards a clarification of the situation,” the company said. He added that the delay in getting his accounts signed by EY could mean loans of around 2 billion euros would be called earlier this week.
Wirecard’s stock price crater immediately after the news, with its value dropping as much as 66% in one point. The shares were down 47% by 06:40 ET.
The difficulty of the group dropped from its position one of Germany’s tech finance favorites to a company mired in controversy due to allegations of fraud. The company was at a point last year worth more than 24 billion euros and even replaced Commerzbank in Germany, in the blue-chip index, but has since seen its market capitalization drop by only 6.5 billion d ‘euros
The Financial Times has released a series of reports on the Wirecard investigation of accounting practices. According to these reports, which started in January 2019, Wirecard from the Singapore office tried to boost revenue through fake and backdated contracts. Another story in October claimed that Wirecard staff appeared to be conspiring to inflate sales and profits at affiliates in Dubai and Dublin and mislead EY.
Wirecard was not immediately available to comment on these reports when contacted by CNBC.